Cleveland, OH-based truck component maker Eaton Corp. said second quarter profits increased 20% to $253 million on 12% higher sales of $3.19 billion compared to the same period in 2005. The company expects growth to slow as 2006 progresses.
“We expect the strong growth we experienced in many of our markets in the first half to slow somewhat over the balance of the year as markets respond to the impact of the continuing rise in interest rates in the U.S. and many other countries,” said Alexander Cutler, Eaton chairman & CEO. “Overall, we anticipate our markets in 2006 to grow between 4% and 5%.”
Cutler said Eaton’s truck segment profits increased 13% to $135 million on 8% higher sales of $646 million in the second quarter compared to the same period in 2005. NAFTA heavy-duty production jumped 7% in the quarter compared to last year, though medium-duty production declined 1%, while both European truck and Brazilian vehicle production increased 2%.
“Second quarter production of NAFTA heavy-duty trucks totaled 97,000 units, about 6% more than in the first quarter of 2006,” he noted. “Orders during the second quarter averaged 28,000 units per month, higher than we had expected at the start of the quarter. The backlog at the end of June was estimated to be about 205,000 units.”